"The strong price gains in the West are sparking questions and concerns about the possibility of another bubble," David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices, said. "However, the talk is focused on fear of a bubble, not a rush to join the party and buy. Moreover, other data suggest a market beginning to shift to slower growth rather than one about to accelerate."

On Monday, the National Association of Realtors said signed contracts for previously owned homes fell to a 10-month low in October.